Looking for some creative financing advice

[Heath D Wallace]

I am almost at the finish line with the rehab part of my first BRRRR. I used a HELOC from my primary residence. The rehab started mid January. I would like to pay off the HELOC when I refinance. There is another great property which I would like to purchase as my families primary residence, to renovate and move into in a couple of years. How can creatively finance a down payment for this property. All ideas all welcome.

[Chris Seveney]

Quote from @Heath D Wallace:

I am almost at the finish line with the rehab part of my first BRRRR. I used a HELOC from my primary residence. The rehab started mid January. I would like to pay off the HELOC when I refinance. There is another great property which I would like to purchase as my families primary residence, to renovate and move into in a couple of years. How can creatively finance a down payment for this property. All ideas all welcome.

First off—congrats on getting to the finish line with your first BRRRR. That's a huge milestone, especially if you managed the rehab and leveraged a HELOC efficiently.

As for your next move: trying to acquire a future primary residence while you're still in the middle of refinancing can be tricky—but there are some paths worth exploring, if structured carefully and conservatively.

Here are a few creative, but grounded, ideas for the down payment:

1. Cross-collateralization (or a blanket loan):

If the equity in your BRRRR is strong post-refi, some portfolio lenders may allow you to use that equity as security toward the down payment on the new property—without needing to actually pull cash out.

2. Seller financing:

Not always available, but if the seller owns the home free and clear or is open to flexible terms, you could negotiate a small upfront payment and structure the rest as an interest-only note for a year or two. This buys you time to build equity elsewhere or increase reserves.

3. Private money/partnership equity:

If the new property is a solid long-term play, consider bringing in a partner for the initial down payment—especially if they’re looking for stable, passive exposure and you’re managing the asset. Offer a fixed return or equity share upon refi or sale.

4. Delay and build liquidity:

Sometimes the best move is not to stretch too thin. After you refinance and stabilize your BRRRR, use that cash flow and freed-up HELOC to position yourself stronger for the next opportunity. Deals will always come—but staying liquid gives you negotiating power.

Not a big fan of the "Creative push" out there right now as anything “creative” should still pencil out conservatively which is not being taught. Don't let the excitement of opportunity outpace your margin of safety.